Motor insurance plans have a pre-defined validity. The policies are generally valid for one year but can differ based on the existing rules. These rules are defined by the regulatory body, the Insurance Regulatory and Development Body of India (IRDAI) from time to time.
It is common knowledge that every vehicle purchase needs to be complemented with a car or bike insurance
policy alongside its registration and PUC. But once the policy is purchased, people tend to forget; forget about its renewal. This article highlights the importance of vehicle insurance renewal along with the benefits it offers and what are the steps to renew it. Let’s have a look –
Renewing motor insurance policy is a simple five step process
Here’s how one can go about it -
Select the insurance company for vehicle insurance renewal
and head over to its renew/buy section.
Enter the elementary details like name, contact details along with details of previous motor insurance policy held.
At this stage, the policyholder needs to input details pertaining to the vehicle and the percentage of NCB earned during the previous period.
Finalise the policy coverage and select suitable add-on covers.
Make payment via preferred mode and get instant policy document delivered to the mailbox.
Advantages of vehicle insurance renewal online
Bike and car insurance
policies can either be purchased online directly from the insurance companies or in a traditional way from insurance agents. Irrespective of that, making a vehicle insurance renewal online has its share of advantages.
- Savings in terms of the premium costs is the first advantage of renewing motor insurance online. Since the transaction is directly with the insurance company, there is no middlemen commission involved thereby lowering the premium costs.
- Next advantage is of savings in time. A motor insurance renewal, what otherwise may seem an arduous task can be ticked off within minutes if done online.
- In addition, tools like motor insurance premium calculator can be used to shortlist a suitable policy and keeping the premium within budget.
- Lastly, when opted for vehicle insurance renewal online, it saves effort of filling multiple forms that otherwise is simplified online. With little input from the user, the systems import most of the information attached to the policyholder from a central database.
Importance of motor insurance renewal
The following points clarify why is it essential to ensure on-time vehicle insurance renewal:
- Legal compliance: A crucial reason to ensure motor insurance renewal is from a legal standpoint. Driving a vehicle with an expired motor insurance policy is equivalent to having no insurance policy at all. Traffic officials when checking the vehicle documents look for the present status of the policy and if not valid, impose a hefty fine for the same. To avoid these penalties, it is a smart choice to continue with motor insurance renewal.
- Saves from financial liabilities: In the event of accident, it is a motor insurance policy that saves from third-party liabilities. Accidents are unpredictable and its financial impact cannot be estimated. Thus, staying prepared for these unwarranted situations pays in the long run.
- No coverage during grace period: Insurance companies offer a few days for renewal after the expiry of insurance cover. This period is known as grace period. When the vehicle insurance renewal is delayed, no coverage is offered during this grace duration which leave the policyholder exposed to the different perils without any backup option.
- Reset of NCB: Another essential reason to ensure timely vehicle insurance renewal is loss of No-claim Bonus (NCB). These no-claim benefits help to lower insurance premium when a claim isn’t made in the previous policy tenure. So, prompt vehicle insurance renewal ensures these NCB benefits are carried on to the subsequent period without any loss.
Following these simple and straightforward steps, a person can proceed with motor insurance renewal in India. With the advantage and benefits of renewing policy discussed above, make sure to be prompt in renewal and avoid unnecessary hassle. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.